Starter activity:

Write down everything you know about expanding a business for the hotseat challenge!

Expanding a business 2

Learning objectives

£ I can list the three typres of integration££ I am able to identify the pros and cons of each type of integration

£££ I can assess the benefits of integration for a given scenario

Types of integration

Vertical integration: occurs when one firm joins with another firm at a different stage of the same production process. This can be backwards or forwards, i.e. joining with supplier or retailer.Horizontal integration: occurs when one firm joins with another firm at the same stage of the production process.Conglomerate integration: occures when one firm joins together with another firm in a different type of production process.

How can stakeholders protect their interests? e.g. customers, employees, managers

Mr Goodacre's examples:

> Lobby government> Boycott the products> Strike> Complain

Individual questions

Over the years, many car companies have joined together through merger or take-over, such as Tata and Jaguar, and Volvo and Saab.

1. State two possible problems that might occur following a takeover in the car industry. (2)2. Explain two ways in which stakeholders might be affected by a takeover in the car industry. (5)

3. Discuss the reassons why one car company might take over another one. (9)